There are multiple ways to collect payments from your customers efficiently. These are the best ways for companies to collect payments - both large and small. These payment platforms include: Bank Accounts, Stripe, PayPal, and through Invoices and ITINs.
The authorization process goes roughly like this:
1. Your customer buys an item on your site with a credit or debit card.
2. That information goes through the payment gateway, which encrypts the data to keep it private, and sends it to the payment processor.
3. The payment processor sends a request to the customer’s issuing bank to check to see that they have enough credit to pay for your stuff.
4. The issuer responds with an approval or a denial.
5. The payment processor sends the answer back to you that the sale was approved and also tells your merchant bank to credit your account.
Without a US bank account, you may be unable to receive payments from Amazon, for example, under Fulfillment by Amazon. So, company formation in the US is normally a must.
If you are in need of a bank account, Jumpstarts Blog offers an ultimate guide on How to Open a Bank Account in the United States as a Non-Resident.
Stripe is a type of online payment processing platform that allows businesses to send and receive payments over the internet. It is essential for businesses that are dealing with different currencies, especially businesses that are doing business outside of their home country.
If you need additional advice on how to set up your stripe account, please read out step by step guide to setting up your own stripe account.
Having PayPal as a business asset means no monthly fees, setup fees, or cancellation fees and there are no minimum processing requirements. You can even accept credit card payments through PayPal even if you don't accept PayPal itself as a payment option for your customers.
PayPal is recommended for a small to medium sized business. It also isn’t just a payment method, they can also process credit and debit cards for you.
The entire process of getting paid only takes only a few seconds.
An invoice payment is submitted by a business to pay for products and services purchased from vendors. Small businesses don’t just need to send invoices to their clients, they also have to pay invoices for the services and supplies they buy to run their operations.
Every small business should have a consistent invoice payment system that keeps them organized and simplifies their small business accounting process. Companies should ensure they pay their invoices on time to avoid late payment fees and to maintain strong relationships with their vendors.
Tips for Making Invoice Payments on Time
Review them when you receive them!
It’s best to establish a consistent practice of reviewing invoices as soon as you receive them from your vendors, so they don’t get misplaced and so the details of the purchase are fresh in your mind. When an invoice comes into your business, review it for the following:
What is an ITIN used for?
IRS issues ITINs to help individuals comply with the U.S. tax laws, and to provide a means to efficiently process and account for tax returns and payments for those not eligible for Social Security numbers.
You need an ITIN to be able to file for the correct tax returns and other payment forms.
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